Meeting Investors' Goals

Meeting Investors' Goals

Meeting Investors' Goals

University of Geneva

About this course: In this course, you will dive into the concepts of rationality and irrationality and understand how they impact our investment decisions and what the consequences can be at the market level.
You will first explore the different biases that we, as humans, are subjected to when facing investment decisions and how they may impact the outcomes of these decisions. Moreover, you will see how emotions and ethical concerns such as honesty and trust influence market participants. When they are considered as a group rather than individually, you will discover how rationality and irrationality can drive asset prices to and away from their fair value. Finally, you will be presented with different portfolio construction methodologies and investment styles that make up the landscape of today's portfolio management industry.
At key points throughout the course, you will benefit from the practical knowledge of experts from our corporate partner, UBS, in how to build and manage clients' portfolios.

In this introductory week, we will start by illustrating how emotions can hinder sensible investment decisions. You will then have the opportunity to check if you master the concepts of the first course that are important for this second course. Finally, we will lay the ground for next week’s content by looking at rational decision making.

7 videos, 2 readings, 2 practice quizzes

Video: Why you should choose this course

Reading: Course syllabus

Video: An example: buying is easy, but when is it a good time to sell? - Buying

Video: An example: buying is easy, but when is it a good time to sell? - Holding

Video: An example: buying is easy, but when is it a good time to sell? - Selling

The focus of this second week is on you, the investor: what are the reasons you participate in financial markets? How do you make investment decisions? What can go wrong in your decision process and what are the consequences? What can you do about it? To answer these questions, we will talk about cognitive biases, emotions and moral values and their respective link with investment decisions.

In this third week, we will have a look at investors’ behavior as a group. How does it impact asset prices? How do these prices reflect available information? What does it imply for the profitability of some trading strategies? What can go wrong in this price formation process and how can (and did) it cause financial bubbles and crises? This week also features as special guest: Prof. Jean-Pierre Danthine, former vice-chairman of the Swiss National Bank, who will offer insights into some of these issues.

18 videos

Video: What you will learn in this Module

Video: Defining market efficiency

Video: Testing for the efficient market hypothesis: Weak form

Video: Testing for the efficient market hypothesis: Semi strong form

Video: Testing for the efficient market hypothesis: Strong form

Discussion Prompt: Do you think markets are efficient?

Video: Overview of different origins of financial crises

Video: A first example for the development and fallout of a real crisis: the VW scandal

Video: A second example for the development and fallout of a real crisis: oil shocks - 1970s

Video: A second example for the development and fallout of a real crisis: oil shocks - 2000s

Video: A first example of an anticipation crisis: 1987 - The "Fed Model"

Video: How do central banks deal with the issue of financial (in)stability? - Course 1 recap

Video: How do central banks deal with the issue of financial (in)stability? - Asset prices

Video: An interview with Prof. Jean-Pierre Danthine

Graded: Graded quiz on market efficiency

Graded: Graded quiz on the origins of financial bubbles and crises

WEEK 4

Portfolio Construction and Investment Styles

In this final week, we will look at two main portfolio construction methodologies: top-down and bottom-up. We will see how they differ but also how they can be combined. In the second lesson, we will review some important investment styles that are commonly used in the portfolio management industry. In this final lesson, you will also be given the opportunity to experiment with different trading strategies and compare your results with fellow learners.

11 videos

Video: What you will learn in this Module

Video: Building a portfolio the top-down way – Definition

Video: Building a portfolio the top-down way – Use

Video: Building a portfolio the top-down way – Importance

Video: Portfolio construction via bottom-up - UBS guest speaker

Video: Value versus growth

Video: Fundamental or quantitative driven style? - UBS guest speaker

Video: Contrarian versus momentum - Momentum

Discussion Prompt: Give it a try: Momentum

Video: Contrarian versus momentum - Contrarian

Discussion Prompt: Give it a try: Contrarian

Video: Core & satellite

Video: Thematic investing - UBS guest speaker

Graded: Graded quiz on portfolio construction

Graded: Graded quiz on investment styles

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University of Geneva

Founded in 1559, the University of Geneva (UNIGE) is one of Europe's leading universities. Devoted to research, education and dialogue, the UNIGE shares the international calling of its host city, Geneva, a centre of international and multicultural activities with a venerable cosmopolitan tradition.

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Ratings and Reviews

Rated 4.8 out of 5 of 537 ratings

J

This is very helpful in understanding the different strategies you can follow

HS

pretty decent content

Amazing insights

I have learned quite a lot about investment styles and types and how to use my knowledge and character into making investment decisions. I also learned to be more realistic and logical and not be caught by emotions when I make investments. And to use all type of available information before I make an investment decision.